Can the Green Supporting Factor reduce financing costs for green projects? NEW REPORT

Can the Green Supporting Factor reduce financing costs for green projects? NEW REPORT

“Ethical Markets welcomes this timely report from 2 degrees Investing . We credit much of this progress toward green finance by European officials on the ground-breaking work of the UNEP Inquiry on Sustainable Finance. We will report on the outcome of today’s high-level meeting in Amsterdam in our upcoming Green Transition Scoreboard® to be released in late April.

~Hazel Henderson, Editor “

Dear Friends and Members of the 2° Investing Initiative,
The Green Supporting Factor is on everybody’s mind as the EU develops its Green Finance policy agenda for 2018 and beyond. As central banks and supervisors convene in Amsterdam today to discuss green finance and climate risk, an evidence-based approach on the potential impact of such a policy intervention is needed.

To respond to this debate, 2° Investing Initiative is publishing a working paper estimating the potential impact of a Green Supporting Factor or Brown Penalty on European banks’ capital, as well as its potential impacts on the cost and availability of capital for low-carbon and high-carbon investments.

Our objective in this work is not to make the case for or against the policy, but based on historical examples identify its potential impact. We look forward to the conversation. As always, get in touch in case of questions, comments, or feedback.